Mwana sees financial boost from reduced Zimbabwe gold royalties

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By Zimbabwe Investor on September 23, 2014. No Comments

Mwana Africa PLC has warmly welcomed the decision by the Government of Zimbabwe in its 2014 Mid-Year Fiscal Policy Review Statement to reduce the royalty on Zimbabwean gold producers from 7% to 5% effective 1 October 2014.

Mwana, which has an 85% interest in and operates the Freda Rebecca gold mine at Bindura in Zimbabwe’s Mashonaland Central province, expected the move by the government to boost its financial position.

Responding to the announcement by Zimbabwe’s Minister of Finance, Patrick Chinamasa, Mwana Chief Executive Officer Kalaa Mpinga said the move came after his company had engaged the government on the matter.

“We have actively engaged with Government on this issue and it is very pleasing that – in a spirit of understanding and co-operation – it has recognised the challenges inherent in the gold mining industry at present”, said CEO Mpinga

“The reduction in the gold royalty rate will provide a welcome financial boost to Freda Rebecca and Mwana.”

Mwana Africa PLC is a pan-African, multi-commodity resources company focused on the production, development and exploration of gold, nickel, copper and diamonds.